Foreign Investment in RMB Funds: Strategy and Policy Update

Capital and Private Equity Association (CVCA) co-held a seminar with Deloitte, inviting professionals and members of CVCA to discuss the latest policy issues as well as share experience on RMB funds.

The seminar started with the opening speech of Ms. Jennifer Qin, lead partner of Deloitte’s IM industry in Asia Pacific. Ms. Qin appreciated the organizer’s effort, and introduced the general content and the first speaker-Ms. Natalie Yu, senior manager of Deloitte. Ms. Yu described the recent trend of private equity investment funds and concluded that PE investment has experienced a historical peak in China. To illustrate her views, she presented details from the regular system, investment risks, domestic LPs expand, setting up RMB funds and QFLP. Afterwards, Ms. Yu analyses the reasons for the increased interest in setting up RMB by foreign firms, which proved the active market environment. Then she led the topic to the new policies for Foreign-invested RMB funds in Shanghai& Beijing, gave special instructions to the key words in The Implementation Measures and also compared the two policies from different points. Finally, Ms. Yu interpreted the two practical solutions for foreign invested RMB funds and set out the unclear tax issues to be further clarified

In the second part, Mr. Nelson Zhou, from Jun He Law Office, brought his own opinions on the opportunities and challenges under the latest policies from the professional perspective. Mr. Zhou exchanged his views with the audiences, mainly from the status of RMB funds, two major challenges in the current situation, the operation mode of fund, the possible cooperation between RMB funds and commercial banks and so on.